Scam Alert: $4M Stolen From Kokomo Finance Protocol
• Kokomo Finance deployed a non-custodial lending protocol on Optimism and Arbitrum.
• CertiK, a blockchain security firm, tweeted on March 26 that Kokomo Finance had stolen $4 million in user funds.
• The deployer of the protocol had programmed the smart contract to illegally pull out liquidity from its pools, drastically impacting the token’s value and crashing its price.
Kokomo Finance Deploys Non-Custodial Lending Platform
The deployer of Kokomo Finance, a non-custodial lending protocol on Optimism and Arbitrum, which are popular layer-2 platforms on Ethereum, has rugged users of $4 million.
CertiK Alerts Users Of Exit Scam
CertiK, a blockchain security firm, tweeted on March 26 that Kokomo Finance exited the protocol and stole $4 million in user funds.
Rug Pulls Become Popular Way For Scammers To Steal Funds
Rug pulls have become a popular way for scammers to steal hard-earned user funds. Here, the deployer of the protocol programs the smart contract to illegally pull out liquidity from its pools, drastically impacting the token’s ability to be freely traded, essentially crashing its price.
Deployer Conducts Exit Scam And Steals ~$4 Million In User Funds
On 26 March 2023, Kokomo Finance conducted an exit scam and stole ~$4 million in user funds. Trackers show that the token is $0.00064850 as of March 27. At the same time, the team had deactivated all of their social media channels, effectively cutting out everyone.
Auditor’s Report Show No Smart Contract Flaw
In recent years,, preceding this heist,. Auditor’s report showed no smart contract flaw .Together with Arbitrum , these two are popular layer-two platforms enabling launching dapps in scalable low fee environment
